Coca-Cola (KO) has redesigned its packaging by introducing plastic bottles with tethered caps. The new bottle design is initially rolling out in the UK, according to a Wall Street Journal report. In addition to its soda business, Coca-Cola makes a variety of other drinks, including water. It has also partnered to introduce alcoholic versions of some of its popular brands.
In Coca-Cola’s new soda packaging, the cap remains attached to the bottle when opened. The goal is to make it easier for consumers to recycle the entire packaging, which could help reduce plastic waste in landfills.
Coca-Cola’s bottles with tethered caps will initially come with Fanta and Coca-Cola soda brands. The company plans to eventually adopt the new bottle design across its various brands in the UK by 2024, according to the report.
Aligning with Changing Regulations
Amid the efforts to curb plastic pollution, regulations targeting single-use plastic packaging are tightening around the world. In the UK, plastic packaging must consist of at least 30% recycled material, failure of which is subject to a tax. In the EU, a rule seeking to reduce plastic bottle cap waste takes effect in 2024, according to the report.
Wall Street’s Take
Wall Street is cautiously optimistic about Coca-Cola stock with a Moderate Buy consensus rating. That’s based on 12 Buys versus five Holds. The average Coca-Cola price target of $70.71 implies 15.54% upside potential to current levels. Shares have increased about 12% year-to-date.
Stock Investors
TipRanks’ Stock Investors tool shows that investor sentiment is currently Positive on Coca-Cola, with 2.9% of portfolios tracked by TipRanks increasing their exposure to KO stock over the past 30 days.
Key Takeaway for Investors
Coca-Cola’s launch of bottles with attached lids will also help it reduce criticism of its business. Some environmental groups have long blamed the company for causing plastic pollution.
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